Friday, November 10, 2006

Democrats taking control of the House could mean bad news for brand name drugmakers. According to a Reuters report, Democrats are expected to push for measures that let Medicare negotiate lower drug prices and for a larger government role in healthcare, which may mean federal price setting for drugs in the near future. Reuters reporters quote reactions of department heads from Novartis, Barr, and Teva Pharmaceuticals in their report. Paul Herrling, head of corporate research for Novartis was quoted as saying, "We know what happened last time. I think there will be a second try to change the way that currently the free market works in the U.S." Generic makers Barr and Teva representatives were more positive about the change in House power.